Biden and Powell meet. Inflation isn’t cooling fast enough for either.

Tuesday’s scheduled meeting between President Joe Biden and Federal Reserve Chairman Jerome Powell is certainly not a victory ride for either.

Polls have now put Biden’s approval rating below that of his predecessor Donald Trump and the five previous presidents at this point in their tenure, according to tables from statistics website FiveThirtyEight.

Powell, recently confirmed for a second term, will at least have the good news that recent economic reports are consistent with the notion that inflation has peaked. Unfortunately, it doesn’t look like the gains will slow down much anytime soon.

In fact, Christopher Waller, a Fed Governor, used those exact words on Monday. “However, whatever measure is considered, headline inflation has been above 4% for about a year, and core inflation is not falling far enough to meet the Fed’s target any time soon,” he said at a presentation in Frankfurt , Germany.

That means aggressive rate hikes will continue. Waller favors further rate hikes of half a point until inflation gets closer to its 2% target. Powell has nearly committed to a half-point hike in June and July, but left open what the Fed will do from there.

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Those rate hikes could further derail the stock market and set the stage for an ugly midterm backdrop where Democrats risk losing districts Biden won by double digits in 2020.

The only positive in the US economy is the job market with an extremely low unemployment rate of 3.6% in April. Waller said a series of wage hikes will reduce job openings but will not lead to a rise in the unemployment rate as long as a recession is avoided.

Steve Goldstein

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*** Join Mansion Global reporter Leslie Hendrickson this lunchtime for a discussion of remote workers flocking to the Sunbelt, with George Ratiu, Senior Economist for realtor.com, and those based in North Carolina Agents Marshall Pickett and Laura Livaudais of North Carolina Ivester Jackson/Christies International. Sign up here.

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EU agrees to ban most Russian oil by year-end

European Union leaders agreed a compromise to ban imports of most Russian oil by the end of the year after the country invaded Ukraine in February.

  • The new round of sanctions only affects Russian crude oil imports that arrive by sea, which accounts for about two-thirds of shipments into the bloc. Pipeline oil will still be allowedin a key concession to Eastern European countries, mainly Hungary, concerned about disrupting supplies.
  • Poland and Germany have pledged to stop pipeline imports until the end end of 2022which would stop about 90% of Russian imports.
  • European Council President Charles Michel said the deal would cut off a huge source of funding for the EU Russian war machine. So far, no sanctions have been imposed on natural gas imports.
  • That was the sixth round EU sanctions against Russia. The bloc also agreed to cut off Sberbank
    ,

    the largest Russian bank, from the Swift payment system and banned three other state broadcasters.

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What’s next: The announcement of the ban has pushed international oil prices to their highest levels since March. EU leaders said they would reconsider the pipeline oil waiver as soon as possible. They might also consider ways to reduce the bloc’s reliance on Russia for natural gas supplies.

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Brian Swint

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Leisure travelers struggle with flight delays and cancellations

Flight disruptions hit millions of Americans who traveled on vacations despite rising fuel costs and higher prices for hotel rooms, airline tickets and restaurants. Transportation Security Administration data shows 6.47 million people passed through airport security Friday through Sunday, the most since 7.2 million in 2019.

  • Flight delays and cancellations eased through Monday but persisted. As of 7 p.m. Eastern Monday, more than 400 flights to and from US airports were canceled and one more 2,776 were delayed, according to flight tracking website FlightAware. Delta Air Lines canceled 4% of its flights on Monday after canceling 6% on Sunday.
  • The problems cascaded from Saturday, when more than 560 flights to and from US airports were canceled and about 5,180 were delayed, according to FlightAware. 7,000 flights were canceled worldwide over the weekend.
  • Republic Airways, operator of American Eagle, Delta Connection and United Express, canceled 5% of its flights according to FlightAware on Sunday and 9% on Saturday. Delta and Republic representatives were unavailable for comment.
  • According to AAA almost 35 million people chose to head to a destination over the holiday weekend despite national average gas prices of around $4.61 a gallon, more than 50% higher than last year. In California, gasoline tops $6.10 per gallon, AAA said.
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What’s next: Delta is cutting its flight schedule this summer to avoid disruption to travelers and plans to cut 100 flights per day from July 1 through August 7.

Liz Moyer

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Tom Cruise’s “Top Gun: Maverick” makes its Supersonic premiere

Moviegoers flocked to theaters over Memorial Day weekend, many to see Tom Cruise’s Top Gun: Maverick, which grossed $124 million at the domestic box office, a sonic debut for the long-awaited Paramount blockbuster. EntTelligence estimated 11.1 million people would watch it loner until Monday.

  • The $124 million is a Three-day sales count. According to Comscore, revenue including Monday is expected to reach $151 million. Internationally, the film grossed an additional $124 million from Friday through Sunday, bringing the worldwide total to $248 million.
  • It was Cruise’s first $100 million opening weekend. The original top gunalso with Cruise, he was Top movie of 1986, which grossed $171 million at the time. Paramount originally planned loner Scheduled to run in 2020 but the Covid-19 pandemic has delayed it.
  • Unlike other films that debuted in streaming or in theaters and streaming simultaneously during the pandemic, loner was just theatre, opening 4,735 cinemasaccording to Box Office Guru.
  • Walt Disney
    ‘s

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    Doctor Strange in the Multiverse of Madness took in $16.4 million over the weekend through Sunday and still is the highest grossing film of the yearwith domestic sales of $375 million, according to Box Office Mojo.

What’s next: The studios have put together a series of blockbusters that they hope will be blockbusters this summer. Komcast
‘s

Universal Pictures is released Jurassic World Dominion Theatrical release on June 10th.

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Liz Moyer

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Lawmakers discuss new gun policy after Texas shooting

Lawmakers from both parties expressed their support for a new gun policy after last week’s school shooting in Texas that killed 19 children and two teachers. Democrats again called for tougher property rules and background checks, as well as a ban on assault weapons.

  • President Joe Biden floated the idea of ​​banning assault weapons Monday, telling reporters outside the White House “there’s just no sound basis” for these types of weapons high quality weapon. “The Second Amendment was never absolute,” he said.
  • On ABC’s In this weekRep. Adam Kinzinger (R., Illinois,) said raising the minimum age for gun purchases to 21 was a “no-brainer,” adding he was willing to participate in one wider debate about guns. “I’m definitely ready to engage in this conversation.”
  • One possible area of ​​agreement between Democrats and Republicans is a “Red Flag Law” This would allow for the confiscation of weapons from people who have been shown to pose a risk to themselves or others.
  • The Justice Department will Check the police response on the Texas shooting after details emerged that law enforcement delayed entering the classroom where the shooter had barricaded himself. Justice said the goal is to “identify the lessons learned.”

What’s next: Senator John Cornyn (R., Texas) told reporters Monday that a bipartisan group of senators will meet virtually today to work on a “backbone” to move gun reform forward. The group has held talks even though the Senate is not in session this week.

Liz Moyer

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Join Barron’s Daily’s Virtual Stock Market Challenge this month and show us your stuff.

Every month we launch a new challenge and invite newsletter readers – you! – build a portfolio with virtual money and compete against the Barron’s and MarketWatch community.

Everyone starts with the same amount and can trade as often or as little as they like. We track the front runners and at the end of the challenge, the winner whose portfolio has the most value will be announced in The Barron’s Daily newsletter.

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– Newsletter edited by Liz Moyer, Camilla Imperiali, Brian Swint

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